Imagine going out to coach the Super Bowl with the other teams playbook in your possession. You will have a huge edge over the other team and your odds of victory will skyrocket because you know exactly what the other team is going to do. That is exactly what is going on with community bank stocks. I spend a lot of my time reviewing the earnings releases and conference calls of the leading regional and community banks to get a feel for what I going on in my favorite industry.
This quarter the big thing on everyone’s mind is M&A. Banks know they need to get bigger and in a slow growth world the only way to accomplish the task is to buy another bank. Knowing that there are active buyers we can assemble a list of likely targets and enjoy huge profits when they are taken over at a large premium to out purchase price. In the 2 and ½ years since I started Banking on Profits we have been involved in about 25 takeovers and as these bank CEOs are telling on this quarters earnings calls the deal pace is going to accelerate the rest of this year and into next.
Seacoast Banking (SBCF)
Through our acquisitions, we have strengthened our presence in Central Florida. We're now Orlando's largest Florida-based bank and are a top-ten bank in that market, one of the nations' fastest growing markets. In fact Orlando led the U.S. in job creation in 2015.
We believe that our reputation as a seasoned aggregator of banks will benefit us in completing additional carefully considered acquisitions going forward.
We look for acquisitions to supplement that growth where it really makes sense and so the really key attribute for us is focusing on the ...